One of America’s largest fantasy and sports betting brands is looking to further expand its reach through regional sports networks.
According to a Bloomberg report, FanDuel is eyeing a multiyear naming rights deal with Diamond Sports Group to bring the gaming brand to 18 regional pay-TV networks. As part of the deal, FanDuel will reportedly acquire a stake in Diamond while also providing the subsidiary of Sinclair Broadcast Group with programming for the 18 channels.
FanDuel has also reportedly vowed to resell Diamond’s streaming service to customers.
Financial woes for Diamond
Diamond’s willingness to secure a deal with FanDuel comes after the company filed for bankruptcy in March 2023 following missed payments on its debt. According to a Yahoo report, Diamond missed a $140 million interest payment leading to Chapter 11 bankruptcy.
According to financial statements, Diamond has had its debt reach at least $8.67 billion.
The company, operator of the Bally’s Sports brand, holds rights to broadcast more than 35 pro sports teams across hockey, basketball, and baseball. Diamond has renewed deals with Charter Communications and DirecTV while restructuring its business amid bankruptcy. Diamond has a bankruptcy scheduled for July 29.
The company is also negotiating with several pro sports leagues over broadcast rights.
Diamond is poised for changes regardless of a potential sale as its proposed restructuring plan includes the early termination of a 10-year naming rights deal with Bally’s. The deal, secured in 2020, was projected to generate roughly $88 million in naming rights fees.
Tough business for Bally’s
FanDuel is considering a deal with Diamond despite Bally’s struggles with its daily fantasy and online sports betting operations.
In 2021, Bally’s agreed to purchase DFS operator Monkey Knight Fight in a deal valued at $90 million. That same year, the company closed its $125 million acquisition of sports betting tech platform Bet.Works.
Bally’s has since shuttered Monkey Knight Fight while its CEO has voiced regrets over its purchase of Bet.Works. As a result of the deals, the Rhode Island-based company reported a $390.7 million non-cash impairment in Q4 2022.
FanDuel continues to grow
A deal with Diamond also further solidifies FanDuel’s presence in the U.S. while bolstering its media efforts. The brand, owned by Ireland-based Flutter Entertainment, went public on the New York Stock Exchange in January with its entire portfolio of brands. In April, FanDuel became the exclusive sports betting operator for the DC Lottery.
Last month, it launched FanDuel TV Extra, a free ad-supported streaming channel.
